The auction hearing step by step: bidding time, lowest bid, award
How an auction hearing runs: the call, the lowest admissible bid, at least 30 minutes of bidding time, bidding with ID. The award makes you owner at once.
Quick answers
How does the auction hearing at the local court proceed?
The court officer (Rechtspfleger) calls the case, reads out the auction conditions and announces the lowest admissible bid. Then the bidding time of at least 30 minutes begins, during which you bid with your ID and, if a security deposit is demanded, prove it at once. After the last bid, it is called out three times; the court then holds a hearing on the award (Zuschlag) and usually grants it in the same session.
How long does a compulsory auction hearing take?
Allow one to two hours. By law, the bidding time lasts at least 30 minutes and is extended for as long as bids keep coming in; on top of that come the call, the reading of the conditions, the checking of the security deposits and the hearing on the award. Arrive in good time, because identification and security must be settled before your first bid.
What do the 5/10 and 7/10 thresholds mean for the award?
If the highest bid is below half of the market value, the court must refuse the award ex officio (5/10 threshold). If it is below seven tenths, a creditor whose claim would then not be covered can prevent the award (7/10 threshold). If the award was refused on one of these grounds, neither threshold applies at the new hearing any more. A second hearing alone is not enough for that.
The first auction hearing of your own often feels intimidating. Yet it follows a clear sequence. Here are the key stages – for an overview of the whole procedure, see our beginner's guide.
Only go into the hearing once the property check, financing and security deposit are settled. For a quick shortlist, it pays to take a look at the risk classes beforehand, so that you do not discover striking appraisals only in the courtroom.
Before bidding: ID and security
At the hearing you must identify yourself with a valid identity card or passport (this is not in the ZVG, but it is established practice for identification). You must also be able to prove your security deposit. Anyone bidding for others needs a publicly certified bidding authorisation.
The call and the lowest admissible bid
The court officer calls the case and announces the auction conditions as well as the lowest admissible bid. The lowest admissible bid covers the procedural costs and the rights that remain in place under the conditions (§ 44 ZVG). No award is made below it.
The bidding time: at least 30 minutes
Only then does the actual bidding time begin. It lasts at least 30 minutes (§ 73 para. 1 ZVG). This is a minimum: as long as bids keep coming in, the auction continues. Falling short of it would be a serious procedural error – even if all parties agree. So you do not have to bid straight away; often the decision comes only towards the end.
Mind the value thresholds
Whether the highest bid ultimately receives the award depends, in the first hearing, on the value thresholds: below 50 % it is refused ex officio, 50–70 % can be overturned on a creditor's application, and from 70 % neither threshold applies any more. That does not make the award certain: the court also refuses it for other reasons, for example when the creditor consents to a stay (§ 33 ZVG) or a procedural defect exists (§ 83 ZVG). Details on this in the guide to the 5/10 and 7/10 thresholds.
The award (Zuschlag): owner at once
If the award is granted, you become the owner the moment it is pronounced (§§ 89, 90 ZVG) – without a notary and without first needing a land register entry. The land register is later corrected ex officio. No notary or estate agent fees apply. What comes next – payment, interest, taxes and risks – is covered in the guide After the award.
In brief
- Bring ID + proof of security (a certified authorisation if applicable).
- Wait for the lowest admissible bid, at least 30 min of bidding time – no panic bidding needed.
- Award = ownership at once, no notary or estate agent fees.
Note: General orientation, not legal advice. The court's official notice is what counts.
New foreclosure auctions in your region by email
Choose your federal state and enter your city or postcode. We email you as soon as a new case there is published or a date changes. With a city or postcode the alert stays free.